Oil and gas development company Empyrean Energy has been informed by Sacgasco, the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that flow-testing of the Dempsey 1-15 well from the field level Kione Zone has produced a commercial gas flow rate of one million cubic feet of gas.
The AIM-traded firm has a 30% working interest in the Dempsey 1-15 well.
It said the flow rate was "very encouraging", as it was water-free natural gas flowing through a 12/64" choke with flowing tubing pressure of 1140 psi, and surface shut-in pressure exceeding 1300 psi.
Operational considerations meant that perforating the Kione Zone ahead of Zone 4 would deliver significant benefits for the perforating of Zone 4 sands, Empyrean explained.
Zone 4 testing preparations were now underway.
After testing Zone 4, Sacgasco reportedly planned to combine production from all flowing tested zones in the Dempsey 1-15 well; and anticipated "very early" cash flow due to the gas sales infrastructure that was connected to the Dempsey well.
Sacgasco previously announced four gas saturated sand intervals at the field production level at Dempsey, with the tested zone referred to said to be "just one" of those reported zones.
Other intervals could be perforated at a future date, should piping configurations allow.
Empyrean said options for testing of various other intervals in the Dempsey Well bore were being maintained.
It anticipated that a flow rate from all combined zones would be announced by the operator in due course.
"A commercial gas flow from this particular Kione sand is positive news for the Dempsey Well and the joint venture partners," said CEO Tom Kelly.
"With preparations underway to test Zone 4 and adding any resulting gas flows together with flows from all zones tested to date, Dempsey is shaping up to provide the JV with early cash flow."
Kelly said infrastructure connected to the well would expedite the timeframe from discovery to gas sales and cash flow.
"The joint venture is retaining plenty of flexibility with regards to future testing and production alternatives."